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BRIC’s are the next global powers

April 8, 2012

U.S., once called the superpower, has started sharing its seat with other countries. According to a new study by Goldman Sach, countries like Brazil, Russia, India and China, have overtaken U.S and are the new dominating global energy industry powers. These four economic new powers have been nicknamed BRIC’s. Anthony Ling, MD of Goldman Sachs International, said the rising power of the four countries can already be seen in the metals and mining industries. Their power and increasing impact can also be felt in the consumer-related and insurance companies. The world as per him is now truly globalizing. As per the study, at the end of the first Gulf War in 1991, out of the 20 largest companies in the energy sector, 55% were American and 45% were European. In 2007, 35% of them are from BRICs countries, 35% are European and only 30% are American. Ling also said: The U.S. is now lagging with the smallest percentage number of energy companies worldwide. If you think about the global resource industry typically being a leader in terms of global trends, we’re starting to see this replicated in the mining industry where 20 percent of the top 20 companies are now from BRICs countries. We believe this sort of pattern will be repeated industry by industry. The BRICs are now expected to venture into the food and pharmaceutical industries. The Goldman Sachs study will be released on July 3rd. Ling spoke at a summit in Geneva focusing which basically outlines a set of foundation ethics for companies. The standard ethics include things like respect for human rights, fair wages, environmental ethics and also anti-corruption practices. Also, Ling quoted the difference that previously the companies that ruled the sectors were not privatized, but now, most of them are private companies. The reason he accounted for this was change in technique of energy production. Now the bulk of the fuel doesn’t come from a few countries but the projects are scattered all over the globe. Another factor that Ling accounted was the declining number of petroleum engineers in the United States, as compared to the Middle East, India, China and Russia where jobs like petroleum engineer are still highly hunted. So, we definitely can expect a switch of power and supremacy in the near future. Source: IHT Image credit: Bricstars